Hochtief unaware of ‘price-sensitive’ info before boosting stake

Leighton Holdings
’ controlling ­shareholder, Hochtief, has denied it was aware of “price-sensitive information" after increasing its stake to almost 59 per cent ahead of the Australian ­contractor’s full year results next week.

Leighton released a letter from Hochtief to Leighton chairman
Robert Humphris
on Thursday acknowledging the German group had authorised share purchases during a “prescribed securities trading period" following Leighton’s third-quarter profits result in early November.

But Hochtief said it was “not the case" that it had any information on Leighton’s coming annual profit results, which will be released on ­February 20.

“Authoritsation was given to third parties not involved in Leighton and who were not in possession of any price-sensitive information to acquire a certain number of shares on or by a future date," Hochtief said.

“The Hochtief nominee directors on the Leighton board played no role in the purchase of shares at the time of ­acquisition."

The Australian Shareholders’ ­Association last week called on Hochtief to abstain from trading in the contractor’s shares ahead of financial results after sending a letter to the ­Australian Securities Exchange ­asking why trading blackouts did not apply to the German group.

“It doesn’t seem right that a party with inside information on the ­forthcoming result can purchase shares so soon before making a material earnings release to the market," the ASA’s policy and engagement coordinator, Stephen Mayne, said in the letter to the ASX. Mr Mayne said Hochtief should be “voluntarily" subjecting itself to trading policies with blackouts in the period before results announcements.

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Hochtief has been making sub­stantial trades in Leighton’s shares since June, when it signalled intentions to creep up the group’s shareholder ­register, breaking a long-standing ­informal agreement not to lift its ­holdings beyond 55 per cent.

The agreement was broken after Hochtief was acquired by Spanish ­construction group ACS, which has taken a more assertive approach to its Australian investment, including ­agitating for board changes.

Hochtief has bought some 3.4 million shares in Leighton since the end of last year, lifting its total holdings to 198.2 million shares, or 58.77 per cent, by February 3.